HPK HighPeak Energy Inc

HighPeak Energy, Inc. (“HighPeak” or the “Company”) (NASDAQ: HPK) today announced financial and operating results for the quarter and the year ended December 31, 2024. In addition, HighPeak provided its 2025 guidance and capital budget, as approved by its Board of Directors.

Highlights

• 2024 sales volumes averaged approximately 50.0 thousand barrels of crude oil equivalent per day (“MBoe/d”), representing a 10% increase year-over-year.
• The Company’s year-end 2024 estimated proved reserves were 199 million Boe (“MMBoe”), representing a 29% increase compared to year-end 2023.
• 2024 net income was $95.1 million, or $0.67 per diluted share and EBITDAX (a non-GAAP financial measure defined and reconciled below) was $842.9 million, or $6.01 per diluted share. 2024 adjusted net income (a non-GAAP financial measure defined and reconciled below) was $144.8 million, or $1.05 per diluted share.
• 2024 lease operating expenses averaged $7.23 per Boe, including workover expenses, representing a 17% decrease year-over-year.
• Reduced long-term debt by $120 million, paid $0.16 per share in dividends and repurchased over 2.4 million shares of common stock during 2024.
• Increased net acreage over 8%, organically replaced inventory in primary zones and successfully delineated additional sub $50 per barrel (“Bbl”) break-even inventory in the Middle Spraberry formation.
• Fourth quarter 2024 sales volumes averaged 50.2 MBoe/d, consisting of 86% liquids, representing a 1% increase over fourth quarter 2023.
• Fourth quarter 2024 net income was $9.0 million, or $0.06 per diluted share, and EBITDAX was $179.4 million, or $1.27 per diluted share.   Fourth quarter 2024 adjusted net income was $28.2 million, or $0.19 per diluted share.

Recent Events

• On February 18, 2025, the Company’s Board of Directors declared a quarterly dividend of $0.04 per common share outstanding payable in March 2025.
• The Company’s Board of Directors authorized the extension of the repurchase authorization of up to $75.0 million of common stock through December 31, 2025, of which approximately $40 million remains available.

HighPeak Chairman and CEO, Jack Hightower, said, “As promised, 2024 was a solid, level-set year for HighPeak. We ran a disciplined and efficient drilling program, reduced our capex budget by 40% from the prior year, increased production by 10%, beat and raised guidance on production, and reduced our operating costs and DC&E costs per foot year over year.  Furthermore, we were successful in improving well results across our acreage and unlocking additional value by delineating new zones, driving total proved reserves 30% higher compared to a year ago. Overall, our team continues to do a fantastic job enhancing the value of our asset base.

"As we focus our attention on 2025, we will maintain capital discipline with our two-rig drilling program, ensuring steady operations in a dynamic market. Our focus on corporate efficiency will keep production flat while reducing capital expenditures by an additional 20%. One of our key objectives is to reduce interest expense and boost levered free cash flow by optimizing our capital structure. These efforts underscore our commitment to shareholder value, reflected in our strategy of debt reduction, consistent quarterly dividends, and opportunistic share buybacks."

2025 Development Outlook

The Company expects to average two (2) drilling rigs and approximately one (1) frac crew during 2025 under its current development plan, assuming commodity prices and capital costs continue to stay in their current ranges.

Production (Boe/d)
• Average production rate	47,000 – 50,500
Capex ($MM)
• Net Operated Wells TIL	52 – 56
• Capital Expenditures, D,C,E&F	$375 - $405
• Capital Expenditures, Infrastructure/Other	$40 - $50
• 2025 HPK Development Capital Expenditures	$415 - $455
• One-Time Infrastructure Projects	$33 - $35
• 2025 Total Capital Expenditures	$448 - $490
Unit Measures ($/Boe)
• Lease Operating Expenses	$7.00 - $7.50
• General & Administrative	$1.25 - $1.35

In addition to the Company’s Development Capital Expenditures, the company will invest approximately $33-$35 million in projects that will expand our field-wide low pressure gas gathering system, extend our in-field overhead electric power distribution system, provide access to additional gas sales outlets with other midstream partners, support lower operating expenses and future life of field development.

Year-End 2024 Proved Reserves

• As of December 31, 2024, HighPeak Energy’s estimated proved reserves, prepared by Cawley, Gillespie & Associates, Inc., increased over 29% from December 31, 2023 to 199 MMBoe consisting of approximately 68% crude oil, 17% NGL and 15% natural gas.
• Proved developed reserves increased 36% to 108 MMBoe compared with December 31, 2023 and comprised 54% of the Company’s total proved reserves.
• The Company’s PV-10 (a non-GAAP financial measure defined and reconciled below) was approximately $3.4 billion at year end 2024 based on pricing guidelines established by the Securities and Exchange Commission (“SEC”). 2024 SEC pricing was $75.48 per Bbl of crude oil and $2.130 per MMBtu of natural gas, before adjustments for price differentials.
• As of December 31, 2024, the average adjusted prices realized over the remaining lives of the Company’s assets were $75.56 per Bbl of crude oil, $20.53 per Bbl of NGL and $0.072 per Mcf of natural gas.
• The Company’s 2024 reserve replacement ratio was 345%, an increase of 17% compared to the Company’s 2023 reserve replacement ratio.

	SEC PRICING
	Crude Oil (MBbl)		NGL (MBbl)		Natural Gas (MMcf)		Total (Mboe)		PV-10 ($M)
Proved developed producing	59,394		21,709		112,734		99,892		$	2,094
Proved developed nonproducing	6,238		1,044		5,668		8,227			198
Total proved developed reserves	65,632		22,753		118,402		108,119			2,292
Proved undeveloped	69,639		11,365		59,252		90,879			1,095
Total proved reserves	135,271		34,118		177,654		198,998		$	3,387

Fourth Quarter 2024 Operational Update

HighPeak’s sales volumes during the fourth quarter of 2024 averaged 50.2 MBoe/d, a 1% increase over the fourth quarter of 2023. Fourth quarter sales volumes consisted of approximately 72% crude oil and 86% liquids. Full-year 2024 sales volumes averaged 50.0 MBoe/d, a 10% increase over 2023 sales volumes.

The Company averaged two drilling rigs and one frac crew during the fourth quarter, drilled 17 gross (16.9 net) horizontal wells and completed 18 gross (17.8 net) operated producing wells. At December 31, 2024, the Company had 21 gross (20.9 net) operated horizontal wells in various stages of drilling and completion.

HighPeak President, Michael Hollis, commented, "HighPeak’s recent well results highlight the robust quality of our inventory, reinforcing confidence in our asset base. By efficiently expanding our consolidated acreage position, we’ve organically replenished our drilling inventory in our primary zones, positioning us for sustained success. Additionally, we are particularly encouraged by the performance of our Middle Spraberry wells, which we plan to build upon throughout 2025. Continued successful delineation of this zone has the potential to add over 200 additional sub-$50/Bbl breakeven locations."

Fourth Quarter 2024 Financial Results

HighPeak reported net income of $9.0 million for the fourth quarter of 2024, or $0.06 per diluted share, and EBITDAX of $179.4 million, or $1.27 per diluted share. HighPeak reported adjusted net income of $28.2 million for the fourth quarter of 2024, or $0.19 per diluted share.

Fourth quarter average realized prices were $70.46 per Bbl of crude oil, $22.30 per Bbl of NGL and $0.29 per Mcf of natural gas, resulting in an overall realized price of $50.83 per Boe, or 72% of the weighted average of NYMEX crude oil prices, excluding the effects of derivatives. HighPeak’s cash costs for the fourth quarter were $11.48 per Boe, including lease operating expenses of $6.81 per Boe, workover expenses of $0.50 per Boe, production and ad valorem taxes of $2.87 per Boe and G&A expenses of $1.30 per Boe. As a result, the Company’s unhedged EBITDAX per Boe was $39.35 per Boe, or 77% of the overall realized price per Boe for the quarter, excluding the effects of derivatives.

HighPeak’s fourth quarter 2024 capital expenditures to drill, complete, equip, provide facilities and for infrastructure were $152.5 million. 

Hedging

Crude oil. As of December 31, 2024, HighPeak had the following outstanding crude oil derivative instruments and the weighted average crude oil prices and premiums payable per Bbl:

										Swaps			Collars, Enhanced Collars & Deferred Premium Puts
Settlement Month		Settlement Year		Type of Contract		Bbls Per Day		Index		Price per Bbl			Floor or Strike Price per Bbl			Ceiling Price per Bbl			Deferred Premium Payable per Bbl
Crude Oil:
Jan - Mar		2025		Swap		5,500		WTI		$	76.37		$	—		$	—		$	—
Jan - Mar		2025		Collar		8,000		WTI		$	—		$	65.00		$	90.00		$	2.12
Jan - Mar		2025		Put		2,000		WTI		$	—		$	58.00		$	—		$	5.00
Apr - Jun		2025		Swap		5,500		WTI		$	76.37		$	—		$	—		$	—
Apr - Jun		2025		Collar		7,000		WTI		$	—		$	65.00		$	90.08		$	2.28
Apr - Jun		2025		Put		2,000		WTI		$	—		$	58.00		$	—		$	5.00
Jul - Sep		2025		Swap		3,000		WTI		$	75.85		$	—		$	—		$	—
Jul - Sep		2025		Collar		7,000		WTI		$	—		$	65.00		$	90.08		$	2.28
Jul - Sep		2025		Put		2,000		WTI		$	—		$	58.00		$	—		$	5.00

The Company’s crude oil derivative contracts detailed above are based on reported settlement prices on the New York Mercantile Exchange for West Texas Intermediate pricing.

Natural gas. In February 2025, the Company entered into the following natural gas derivative instruments, specifically HH fixed price swaps at $4.43 per MMBtu for 30,000 MMBtu per day for March 2025 through February 2026.

Settlement Month		Settlement Year		Type of Contract		MMBtu Per Day		Index		Price per MMBtu
Natural Gas:
Jan – Mar		2025		Swap		10,333		HH		$	4.43
Apr – Jun		2025		Swap		30,000		HH		$	4.43
Jul – Sep		2025		Swap		30,000		HH		$	4.43
Oct – Dec		2025		Swap		30,000		HH		$	4.43
Jan – Mar		2026		Swap		19,667		HH		$	4.43

Dividends

During the fourth quarter of 2024, HighPeak’s Board of Directors approved a quarterly dividend of $0.04 per share, or $5.0 million in dividends paid to stockholders during the quarter. In addition, in February 2025, the Company’s Board of Directors declared a quarterly dividend of $0.04 per share, or approximately $5.0 million in dividends, to be paid on March 25, 2025, to stockholders of record on March 3, 2025.  

Conference Call

HighPeak will host a conference call and webcast on Tuesday, March 11, 2025, at 10:00 a.m. Central Time for investors and analysts to discuss its results for the fourth quarter of 2024 and its 2025 operating plan. Conference call participants may register for the call here. Access to the live audio-only webcast and replay of the earnings release conference call may be found here. A live broadcast of the earnings conference call will also be available on the HighPeak Energy website at www.highpeakenergy.com under the “Investors” section of the website. A replay will also be available on the website following the call.

When available, a copy of the Company’s earnings release, investor presentation and Annual Report on Form 10-K may be found on its website at www.highpeakenergy.com.

Conference Participation

HighPeak Energy will participate in-person at the upcoming 37th Annual Roth Conference to be held from March 16-18, 2025, located in Dana Point, California.

About HighPeak Energy, Inc.

HighPeak Energy, Inc. is a publicly traded independent crude oil and natural gas company, headquartered in Fort Worth, Texas, focused on the acquisition, development, exploration and exploitation of unconventional crude oil and natural gas reserves in the Midland Basin in West Texas. For more information, please visit our website at www.highpeakenergy.com.

Cautionary Note Regarding Forward-Looking Statements

The information in this press release contains forward-looking statements that involve risks and uncertainties. When used in this document, the words “believes,” “plans,” “expects,” “anticipates,” “forecasts,” “intends,” “continue,” “may,” “will,” “could,” “should,” “future,” “potential,” “estimate” or the negative of such terms and similar expressions as they relate to HighPeak Energy, Inc. (“HighPeak Energy” or the “Company”) are intended to identify forward-looking statements, which are generally not historical in nature. The forward-looking statements are based on the Company's current expectations, assumptions, estimates and projections about the Company and the industry in which the Company operates. Although the Company believes that the expectations and assumptions reflected in the forward-looking statements are reasonable as and when made, they involve risks and uncertainties that are difficult to predict and, in many cases, beyond the Company's control. For example, the Company’s review of strategic alternatives may not result in a sale of the Company, a recommendation that a transaction occur or result in a completed transaction, and any transaction that occurs may not increase shareholder value, in each case as a result of such risks and uncertainties.

These risks and uncertainties include, among other things, the results of the strategic review being undertaken by the Company’s Board and the interest of prospective counterparties, the Company’s ability to realize the results contemplated by its 2025 guidance, volatility of commodity prices, product supply and demand, the impact of a widespread outbreak of an illness, such as the coronavirus disease pandemic, on global and U.S. economic activity, competition, the ability to obtain environmental and other permits and the timing thereof, other government regulation or action, the ability to obtain approvals from third parties and negotiate agreements with third parties on mutually acceptable terms, litigation, the costs and results of drilling and operations, availability of equipment, services, resources and personnel required to perform the Company's drilling and operating activities, access to and availability of transportation, processing, fractionation, refining and storage facilities, HighPeak Energy's ability to replace reserves, implement its business plans or complete its development activities as scheduled, access to and cost of capital, the financial strength of counterparties to any credit facility and derivative contracts entered into by HighPeak Energy, if any, and purchasers of HighPeak Energy's oil, natural gas liquids and natural gas production, uncertainties about estimates of reserves, identification of drilling locations and the ability to add proved reserves in the future, the assumptions underlying forecasts, including forecasts of production, expenses, cash flow from sales of oil and gas and tax rates, quality of technical data, environmental and weather risks, including the possible impacts of climate change, cybersecurity risks and acts of war or terrorism. These and other risks are described in the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K and other filings with the SEC. The Company undertakes no duty to publicly update these statements except as required by law.

Reserve engineering is a process of estimating underground accumulations of hydrocarbons that cannot be measured in an exact way. The accuracy of any reserve estimate depends on the quality of available data, the interpretation of such data and price and cost assumptions made by reserve engineers. Reserves estimates included herein may not be indicative of the level of reserves or PV-10 value of oil and natural gas production in the future, as they are based on 2024 SEC prices which are different than current commodity prices. In addition, the results of drilling, testing and production activities may justify revisions of estimates that were made previously. If significant, such revisions could impact HighPeak’s strategy and change the schedule of any further production and development drilling. Accordingly, reserve estimates may differ significantly from the quantities of oil and natural gas that are ultimately recovered.

Use of Projections

The financial, operational, industry and market projections, estimates and targets in this press release and in the Company’s guidance (including production, operating expenses and capital expenditures in future periods) are based on assumptions that are inherently subject to significant uncertainties and contingencies, many of which are beyond the Company’s control. The assumptions and estimates underlying the projected, expected or target results are inherently uncertain and are subject to a wide variety of significant business, economic, regulatory and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the financial, operational, industry and market projections, estimates and targets, including assumptions, risks and uncertainties described in “Cautionary Note Regarding Forward-Looking Statements” above. These projections are speculative by their nature and, accordingly, are subject to significant risk of not being actually realized by the Company. Projected results of the Company for 2025 are particularly speculative and subject to change. Actual results may vary materially from the current projections, including for reasons beyond the Company’s control. The projections are based on current expectations and available information as of the date of this release. The Company undertakes no duty to publicly update these projections except as required by law.

Drilling Locations

The Company has estimated its drilling locations based on well spacing assumptions and upon the evaluation of its drilling results and those of other operators in its area, combined with its interpretation of available geologic and engineering data. The drilling locations actually drilled on the Company’s properties will depend on the availability of capital, regulatory approvals, commodity prices, costs, actual drilling results and other factors. Any drilling activities conducted on these identified locations may not be successful and may not result in additional proved reserves. Further, to the extent the drilling locations are associated with acreage that expires, the Company would lose its right to develop the related locations.

HighPeak Energy, Inc.
Unaudited Condensed Consolidated Balance Sheet Data
(In thousands)
	December 31,
	2024				2023
Current assets:
Cash and cash equivalents	$	86,649			$	194,515
Accounts receivable		85,242				94,589
Inventory		10,952				7,254
Derivative instruments		7,582				31,480
Prepaid expenses		4,587				995
Total current assets		195,012				328,833
Crude oil and natural gas properties, using the successful efforts method of accounting:
Proved properties		3,959,545				3,338,107
Unproved properties		70,868				72,715
Accumulated depletion, depreciation and amortization		(1,184,684	)			(684,179	)
Total crude oil and natural gas properties, net		2,845,729				2,726,643
Other property and equipment, net		3,201				3,572
Derivative instruments		—				16,059
Other noncurrent assets		19,346				5,684
Total assets	$	3,063,288			$	3,080,791
Current liabilities:
Current portion of long-term debt, net	$	120,000			$	120,000
Accounts payable – trade		74,011				63,583
Accrued capital expenditures		35,170				39,231
Revenues and royalties payable		26,838				29,724
Other accrued liabilities		22,196				19,613
Derivative instruments		5,380				13,054
Operating leases		719				528
Advances from joint interest owners		316				262
Accrued interest		—				1,398
Total current liabilities		284,630				287,393
Noncurrent liabilities:
Long-term debt, net		928,384				1,030,299
Deferred income taxes		232,398				197,068
Asset retirement obligations		14,750				13,245
Operating leases		670				—
Derivative instruments		—				65
Commitments and contingencies
Stockholders’ equity
Common stock		13				13
Additional paid-in capital		1,166,609				1,189,424
Retained earnings		435,834				363,284
Total stockholders’ equity		1,602,456				1,552,721
Total liabilities and stockholders’ equity	$	3,063,288			$	3,080,791

HighPeak Energy, Inc.
Unaudited Condensed Consolidated Statements of Operations
(in thousands, except per share data)
	Three Months EndedDecember 31,								Year EndedDecember 31,
	2024				2023				2024				2023
Operating revenues:
Crude oil sales	$	232,881			$	296,140			$	1,060,476			$	1,086,598
NGL and natural gas sales		1,925				5,013				8,938				24,695
Total operating revenues		234,806				301,153				1,069,414				1,111,293
Operating costs and expenses:
Crude oil and natural gas production		33,762				37,666				132,244				145,362
Production and ad valorem taxes		13,267				14,077				59,677				58,472
Exploration and abandonments		449				862				1,476				5,234
Depletion, depreciation and amortization		105,631				132,862				500,752				424,424
Accretion of discount		244				162				966				522
General and administrative		6,001				4,646				20,392				16,598
Stock-based compensation		1,375				3,862				12,701				25,957
Total operating costs and expenses		160,729				194,137				728,208				676,569
Other expense		390				220				3,795				8,262
Income from operations		73,687				106,796				337,411				426,462
Interest income		1,721				1,985				8,685				2,908
Interest expense		(39,508	)			(44,623	)			(168,712	)			(147,901	)
(Loss) gain on derivative instruments, net		(23,053	)			58,500				(46,464	)			27,602
Loss on extinguishment of debt		—				—				—				(27,300	)
Income before income taxes		12,847				122,658				130,920				281,771
Provision for income taxes		3,866				27,654				35,851				65,905
Net income	$	8,981			$	95,004			$	95,069			$	215,866
Earnings per share:
Basic net income	$	0.07			$	0.68			$	0.69			$	1.64
Diluted net income	$	0.06			$	0.66			$	0.67			$	1.58
Weighted average shares outstanding:
Basic		124,348				126,242				125,281				117,956
Diluted		128,073				130,579				129,205				123,020
Dividends declared per share	$	0.04			$	0.025			$	0.16			$	0.10

  

HighPeak Energy, Inc.
Unaudited Condensed Consolidated Statements of Cash Flows
(in thousands)
	Year Ended December 31,
	2024				2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	95,069			$	215,866
Adjustments to reconcile net income to net cash provided by operations:
Provision for deferred income taxes		35,330				65,905
Loss on extinguishment of debt		—				27,300
Loss (gain) on derivative instruments		46,464				(27,602		)
Cash paid on settlement of derivative instruments		(14,246	)			(24,194		)
Amortization of debt issuance costs		8,278				11,411
Amortization of discounts on long-term debt		9,865				15,140
Stock-based compensation expense		12,701				25,957
Accretion expense		966				522
Depletion, depreciation and amortization		500,752				424,424
Exploration and abandonment expense		620				4,242
Changes in operating assets and liabilities:
Accounts receivable		9,347				2,007
Prepaid expenses, inventory and other assets		(19,474	)			6,923
Accounts payable, accrued liabilities and other current liabilities		4,719				8,488
Net cash provided by operating activities		690,391				756,389
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to crude oil and natural gas properties		(604,828	)			(1,009,855		)
Changes in working capital associated with crude oil and natural gas property additions		(1,294	)			(100,802		)
Acquisitions of crude oil and natural gas properties		(14,844	)			(15,085		)
Proceeds from sales of properties		339				—
Other property additions		(216	)			(193		)
Net cash used in investing activities		(620,843	)			(1,125,935		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments under Term Loan Credit Agreement		(120,000	)			—
Repurchased shares under buyback program		(35,166	)			—
Dividends paid		(20,058	)			(11,864		)
Dividend equivalents paid		(2,133	)			(1,251		)
Debt issuance costs		(58	)			(28,444		)
Proceeds from the exercises of warrants		1				4,028
Borrowings under Term Loan Credit Agreement, net of discount		—				1,170,000
Borrowings under Prior Credit Agreement		—				255,000
Repayments under Prior Credit Agreement		—				(525,000		)
Repayments of 10.000% Senior Notes and 10.625% Senior Notes		—				(475,000		)
Premium on extinguishment of debt		—				(4,457		)
Proceeds from issuance of common stock		—				155,768
Stock offering costs		—				(5,371		)
Proceeds from exercises of stock options		—				148
Net cash (used in) provided by financing activities		(177,414	)			533,557
Net (decrease) increase in cash and cash equivalents		(107,866	)			164,011
Cash and cash equivalents, beginning of period		194,515				30,504
Cash and cash equivalents, end of period	$	86,649			$	194,515

HighPeak Energy, Inc.
Unaudited Summary Operating Highlights
	Three Months EndedDecember 31,								Year EndedDecember 31,
	2024				2023				2024				2023
Average Daily Sales Volumes:
Crude oil (Bbls)		35,926				40,624				37,914				38,041
NGLs (Bbls)		7,289				5,262				6,241				4,239
Natural gas (Mcf)		42,007				24,395				34,828				19,777
Total (Boe)		50,216				49,952				49,960				45,577
Average Realized Prices (excluding effects of derivatives):
Crude oil per Bbl	$	70.46			$	79.24			$	76.42			$	78.26
NGL per Bbl	$	22.30			$	19.93			$	22.06			$	21.51
Natural gas per Mcf	$	0.29			$	1.51			$	0.49			$	1.56
Total per Boe	$	50.83			$	65.53			$	58.48			$	66.80
Margin Data ($ per Boe):
Average price, excluding effects of derivatives	$	50.83			$	65.53			$	58.48			$	66.80
Lease operating expenses		(6.81	)			(7.53	)			(6.76	)			(8.04	)
Expense workovers		(0.50	)			(0.66	)			(0.47	)			(0.70	)
Production and ad valorem taxes		(2.87	)			(3.06	)			(3.26	)			(3.51	)
General and administrative expenses		(1.30	)			(1.01	)			(1.12	)			(1.00	)
	$	39.35			$	53.27			$	46.87			$	53.55

HighPeak Energy, Inc.
Unaudited Earnings Per Share Details
	Three Months EndedDecember 31,								Year EndedDecember 31,
	2024				2023				2024				2023
Net income as reported	$	8,981			$	95,004			$	95,069			$	215,866
Participating basic earnings		(861	)			(9,103	)			(9,155	)			(21,890	)
Basic earnings attributable to common shareholders		8,120				85,901				85,914				193,976
Reallocation of participating earnings		5				133				108				334
Diluted net income attributable to common shareholders	$	8,125			$	86,034			$	86,022			$	194,310
Basic weighted average shares outstanding		124,348				126,242				125,281				117,956
Dilutive warrants and unvested stock options		1,571				2,178				1,770				2,905
Dilutive unvested restricted stock		2,154				2,159				2,154				2,159
Diluted weighted average shares outstanding		128,073				130,579				129,205				123,020
Net income per share attributable to common shareholders:
Basic	$	0.07			$	0.68			$	0.69			$	1.64
Diluted	$	0.06			$	0.66			$	0.67			$	1.58

HighPeak Energy, Inc.
Unaudited Reconciliation of Net Income to EBITDAX, Discretionary Cash Flow and Net Cash Provided by Operations
(in thousands)
	Three Months EndedDecember 31,								Year EndedDecember 31,
	2024				2023				2024				2023
Net income	$	8,981			$	95,004			$	95,069			$	215,866
Interest expense		39,508				44,623				168,712				147,901
Interest income		(1,721	)			(1,985	)			(8,685	)			(2,908	)
Income tax expense		3,866				27,654				35,851				65,905
Depletion, depreciation and amortization		105,631				132,862				500,752				424,424
Accretion of discount		244				162				966				522
Exploration and abandonment expense		449				862				1,476				5,234
Stock based compensation		1,375				3,862				12,701				25,957
Derivative related noncash activity		20,704				(61,662	)			32,218				(51,796	)
Other expense		390				220				3,795				8,262
Loss on extinguishment of debt		—				—				—				27,300
EBITDAX		179,427				241,602				842,855				866,667
Cash interest expense		(34,949	)			(40,084	)			(150,569	)			(125,807	)
Other (a)		1,682				1,398				3,513				(1,889	)
Discretionary cash flow		146,160				202,916				695,799				738,971
Changes in operating assets and liabilities		(6,642	)			31,731				(5,408	)			17,418
Net cash provided by operating activities	$	139,518			$	234,647			$	690,391			$	756,389
(a) includes interest income net of current tax expense, other expense and operating portion of exploration and abandonment expenses.

HighPeak Energy, Inc.
Unaudited Reconciliation of Net Income to Adjusted Net Income
(in thousands, except per share data)
	Three Months Ended December 31, 2024								Year Ended December 31, 2024
	Amounts				Amounts per Diluted Share				Amounts				Amounts per Diluted Share
Net income	$	8,981			$	0.06			$	95,069			$	0.69
Derivative loss, net		23,053				0.15				46,464				0.34
Stock-based compensation		1,375				0.01				12,701				0.09
Other expense		390				0.01				3,795				0.03
Income tax adjustment for above items *		(5,584	)			(0.04	)			(13,222	)			(0.10	)
Adjusted net income	$	28,215			$	0.19			$	144,807			$	1.05
* Assuming 21% statutory tax rate

HighPeak Energy, Inc.
Unaudited Reconciliation of Standardized Measure to PV-10
(in thousands)
As of December 31, 2024	Total Proved
Standardized measure	$	2,994,997
Present value of future income taxes and certain abandonment costs discounted at 10%		392,077
Present value of estimated future cash flows (PV-10)	$	3,387,074

HighPeak Energy, Inc.
Unaudited Reserve Replacement Computations
	MBoe
Proved Reserves on December 31, 2023	154,162
Extensions, discoveries and revisions	63,121
Production	(18,285	)
Proved Reserves on December 31, 2024	198,998
Reserve Replacement with the drill bit	345	%

Investor Contact:

Ryan HightowerVice President, Business Development817.850.9204 rhightower@highpeakenergy.com

Source: HighPeak Energy, Inc.